The peer-to-peer rental market in Canada: why 2026 is a turning point

Canada's tool and equipment rental market generated $5.73 billion CAD in 2024, up 6.1% year-over-year. Projections for 2026 point to $6.3 billion CAD — and that figure doesn't yet account for the peer-to-peer wave that is reshaping the sector.

Globally, the sharing economy was valued at $366 billion USD in 2024. It is expected to reach $1.4 trillion USD by 2030 — an annual growth rate of nearly 25%. Canada, with 38 million connected consumers and one of the most active renovation cultures in the world, is at the forefront of this transformation.

Canadians renovate — and they do it themselves

The numbers are striking: Canadians spent $59.3 billion CAD on residential renovations in 2024, with projections of $61 billion for 2025. Even more telling: 49% of Canadian homeowners carry out all their home improvements themselves — without hiring professionals.

That means tens of millions of projects every year: laying flooring, building a deck, renovating a bathroom, installing a fence. Projects that require specialized tools — hammer drills, circular saws, scaffolding, compressors — that you may only use once.

Buying a mitre saw for a weekend project at $400? It makes no economic sense. And Canadians know it.

The 80% rule: the tool that sits idle

Most tools spend 80% of their lives doing nothing. They take up space in a garage, depreciate, collect dust. Meanwhile, your neighbour is searching online for exactly the same tool.

This is the fundamental inefficiency that the peer-to-peer model corrects: turning dormant assets into shared resources. The owner generates income from something they're not using. The renter accesses the tool they need without buying it. Savings typically reach 30 to 40% compared to traditional rental channels.

The generation that rents everything

71% of sharing economy participants in Canada are under 45. This is no coincidence. Millennials and Gen Z grew up with Netflix, Spotify, Airbnb and Uber — services built on access rather than ownership.

That same logic now applies to tools. Why buy when you can rent in a few clicks, pick up the next morning, and return when the job is done? According to Deloitte, 64% of Gen Z and 63% of Millennials are willing to pay more for services aligned with their values — including sustainability. The sharing economy answers exactly that expectation.

The environmental case: renting means less pollution

The European Rental Association estimates that shifting from individual ownership to rental can reduce equipment-related emissions by 30 to 50%.

The logic is straightforward: one tool shared among a hundred users replaces a hundred tools manufactured, packaged, shipped, and eventually discarded. Manufacturing accounts for 20 to 30% of direct industrial emissions in Canada. Reducing the production of new tools — by extending their useful life through sharing — is one of the most effective concrete actions at the individual level.

Renting is not just an economic choice. It's a responsible one.

Peer-to-peer is taking its place

Peer-to-peer rental platforms are no longer a novelty. They now represent a credible alternative to traditional rental chains, with one key advantage: proximity. Industry estimates forecast that 20% of all equipment rentals will go through P2P platforms by 2030. The movement has started.

Got tools sitting idle in your garage? List them on Toolsy and start earning. Got a project this weekend? Find the tool you need from someone near you.

The market is here. The demand is real. The right time is now.

Sources: ARA / Equipment Journal, Statistics Canada, Deloitte 2024 Gen Z & Millennial Survey, European Rental Association, IBISWorld / Building Excellence, GlobeNewswire Sharing Economy Report 2025.